Alcoa, Inc. (NYSE: AA) is trading up 4% at $13.97 today ahead of tomorrow’s earnings. At 3:20 PM EST we have seen some 34 million shares trade hands, which is only an average day’s trading volume. But we are seeing elevated call option trading ahead of tomorrow’s earnings report. Here is the volume and open interest data for the selected OCT-2009 CALL and PUT strike prices:
CALLS   Volume   OpInt.
$14.00Â Â Â 28,328Â Â Â 56,582
15.00Â Â Â 10,049Â Â Â 55,084
16.00Â Â Â 12,852Â Â Â 6,745
PUT$   Volume   OpInt.
$12.50Â Â Â 12,469Â Â Â 25,712
$14.00Â Â Â 6,782Â Â Â 18,141
It is assumed that the bets are that the company is finally on the path to resuming earnings, and the notion that gold is soaring has put a bid in under the rest of the major metals companies.
JON C. OGG
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